I don't think you need a long explanation for why those at the very top of the income distribution pay lower tax rates than the rest of America. Kevin Drum does not think you really need one ... but then draws you a graph to say "the tax system is moderately progressive until you get up to the 5,000 richest people in the country, at which point it becomes regressive."

Well yes, of course it does, Kevin. The tax code includes lots of credits and exemptions. Those with over $10 million in income are able to contribute to both political parties to keep those credits and exemptions in place to their benefit. My solution to that is to get rid of credits, exemptions, and graduated tax tables. What's yours?

(Possible idea: How about taxing political donations?)

Labels: economics, taxes